Adtran Networks SE · XETR:ADV
Adtran Networks — ADVA Optical Networking — Q1 2016 Earnings Presentation
22 slides from Adtran Networks's earnings presentation, 2016
Slide 1: ADVA Optical Networking Analyst Presentation Q1 2016
ADVA Optical Networking Analyst Presentation Q1 2016
Slide 2: Disclaimer
Disclaimer FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements with words such as “believes”, “anticipates” and “expects” to describe expected revenues and earnings, anticipated demand for optical networking solutions, internal estimates and liquidity. These forward-look
Slide 3: Business Update and Outlook
Business Update and Outlook Brian Protiva Chief Executive Officer 3 © 2016 ADVA Optical Networking. All rights reserved. Confidential.
Slide 4: Q1 2016 in Review
Q1 2016 in Review • Q1 revenues rose by 27.6% vs. the previous year to EUR 122 million. This result is in line with the guidance provided on February 25, 2016 of between EUR 117 million and EUR 127 million • Q1 pro forma operating income* was EUR 2.0 million or 1.6% of revenues, also in line with gu
Slide 5: Prospects for Q2 2016
Prospects for Q2 2016 • Q2 revenue forecast for more than 30% growth YoY; mid-point of guidance is at EUR 150 million vs. the previous year of EUR 112 million; the last four weeks have led us to believe that we can maintain aggressive growth rates • Cloud continues to drive demand for open connectiv
Slide 6: The Nature of Connectivity Has Changed
The Nature of Connectivity Has Changed Cloud Data centers (DCs) define networking demand Distributed DC architectures emerge Hyper-scale, macro and micro DCs Open Demand becomes unpredictable Networks must be more agile Programmable Over-the-Top (OTT) services challenge existing network se
Slide 7: Our Solutions
Our Solutions Cloud Extension Cloud & OTT services Service delivery and assurance Metro/Core Distribution and hosting Business continuity Synchronization delivery and assurance Cloud access Cloud interconnect Connecting, extending and assuring the cloud 7 © 2016 ADVA Optical Networking. All rights r
Slide 8: Data Center Interconnect & Carrier Infrastructure
Data Center Interconnect & Carrier Infrastructure ICP TAM: $0.9 billion1 Cloud & OTT CAGR: >12% services Revenue contribution CSP TAM: $1.3 billion1 Metro/Core CAGR: 9% Distribution and hosting Revenue contribution* *)Total CSP WDM revenues, incl. non DCI Business continuity Enterprise TAM: $0.3 bil
Slide 9: Cloud Interconnect: Enterprise Update
Cloud Interconnect: Enterprise Update What we said: - Security matters Enterprise TAM: $0.3 billion1 CAGR: 10% Revenue contribution Cloud interconnect Encryption technology becomes mandatory in private enterprise networks 1)Ovum: Opportunities for Optical Data Center Interconnect, May 2015. 9 © 2016
Slide 10: Cloud Interconnect: CSP Update
Cloud Interconnect: CSP Update Revenue contribution CSP TAM: $1.3 billion1 Metro/Core CAGR: 9% Distribution & Hosting Revenue contribution* What we said: - 100G comes to the metro - Europe has to catch up *)Total CSP WDM revenues, incl. non DCI Cloud Interconnect Leveraging our strength in Europe an
Slide 11: Cloud Interconnect: ICP Update
Cloud Interconnect: ICP Update ICP TAM: $0.9 billion1 Cloud & OTT CAGR: >12% Services Revenue contribution What we said: - ICP space is heating up Source: FibreSystems - “Open” matters http://www.fibre-systems.com/news/story/microsoft-shakes-data-centre-interconnect-market Cloud Interconnect Momentu
Slide 12: Cloud Access and Synchronization
Cloud Access and Synchronization Ethernet Access Devices TAM: $1 billion1 CAGR: 7% Revenue contribution What we said: - NFV disrupts cloud service delivery - Network synchronization strategic for 5G Synchronization & Timing Service delivery and assurance TAM: ~ $300 million2 CAGR: 5% Revenue contrib
Slide 13: Ensemble: Cloud Software
Ensemble: Cloud Software Cloud Extension Cloud Software “We believe NFV software will comprise over 80 percent of the $11.6 billion total NFV revenue in 2019” Michael Howard, senior research director Cloud Access for carrier networks at IHS. With Ensemble, you can use the cloud to deliver the cloud!
Slide 14: Financial Performance
Financial Performance 14 © 2016 ADVA Optical Networking. All rights reserved. Confidential.
Slide 15: Quarterly IFRS Revenues and Pro Forma Profitability
Quarterly IFRS Revenues and Pro Forma Profitability Revenues and Pro Forma Gross Profit +40% +28% +29% +29% +22% 122.3 122.0 112.3 111.8 95.6 42.4 41.8 40.4 34.6 38.7 37.4% 33.1% 34.4% 34.6% 36.2% Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Pro Forma Operating Income* 9.6 9.0 7.7 3.7 2.0 3.9% 6.8% 7.8%
Slide 16: IFRS Profitability
IFRS Profitability 2015 2016 EUR Million Q1 Q2 Q3 Q4 Q1 Pro Forma Operating Income 3.7 7.7 9.6 9.0 2.0 (3.9%) (6.8%) (7.8%) (8.1%) (1.6%) Operating Income 3.3 7.4 8.5 7.5 1.0 (3.5%) (6.6%) (6.9%) (6.7%) (0.8%) Net Income 4.3 5.1 8.6 8.9 -5.2 (4.5%) (4.6%) (7.0%) (7.9%) (-4.2%) Diluted EPS in EUR 0.0
Slide 17: Quarterly Revenues Per Region
Quarterly Revenues Per Region 122.3 122.0 112.3 111.8 5% +27% 12% 95.6 6% 8% 5% 30% 31% 42% +44% 32% 37% 64% 57% 59% 53% 58% +17% Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 EMEA Americas Asia-Pacific (in millions of EUR, in % of revenues) Growth Y-o-Y Note: Potential differences due to rounding 17 © 20
Slide 18: IFRS Balance Sheet
IFRS Balance Sheet Dec. 31 Mar. 31 Dec. 31 Mar. 31 Assets 2015 2016 Equity & liabilities 2015 2016 Cash & cash equivalents 93.9 73.4 Accounts payable 43.7 57.8 Accounts receivable 70.4 92.8 Financial liabilities 42.7 64.0 Inventories 73.0 75.9 Other liabilities 89.2 96.9 Other assets 154.2 184.1 Equ
Slide 19: IFRS Consolidated Cash Flow Statement
IFRS Consolidated Cash Flow Statement 2015 2016 EUR million Q1 Q2 Q3 Q4 Q1 Net cash provided by operating activities -1.5 18.1 12.0 10.7 2.0 Net cash used for investing activities -9.0 -11.5 -10.1 -10.8 -42.9 Net cash provided by (used for) financing activities -2.4 -1.0 -1.3 14.5 21.0 Net effect of
Slide 20: Guidance Q2 2016
Guidance Q2 2016 • Revenues between EUR 145 million and EUR 155 million • Pro forma operating margin between 1% and 4% of revenues* • ADVA Optical Networking will continue to perform detailed quarterly reviews of the expected business development in respect of all intangible assets, including capita
Slide 21: Solution Overview
Solution Overview Cloud Extension Cloud & OTT services Service delivery and assurance Metro/Core Distribution and hosting Business continuity Synchronization delivery and assurance Cloud access Cloud interconnect Connecting, extending and assuring the cloud 21 © 2016 ADVA Optical Networking. All rig
Slide 22: Thank You
Thank You IMPORTANT NOTICE The content of this presentation is strictly confidential. ADVA Optical Networking is the exclusive owner or licensee of the content, material, and information in this presentation. Any reproduction, publication or reprint, in whole or in part, is strictly prohibited. The
ADVA Optical Networking — Q1 2016 Earnings Presentation on 6ix